2009 machinery industry three good policy support

Release time:2023-04-26

In 2009, the industry development faces the pressure of slowing domestic and foreign demand. Next year, there will be three good factors to promote the development of the industry, namely, the macro policy of "maintaining growth", the decline of factor prices and the strengthening of policy support.

First, the macro policy of "maintaining growth". From the perspective of the current macro policy, with the deterioration of the external environment, the domestic economic growth is also obviously slowing down. The central bank lowered the two rate this time, and the credit policy turned positive, which reflects the national macro policy is changing from "anti-inflation" to "growth". We think investment from credit easing will boost demand for machinery. In addition, the government is likely to invest more to boost economic growth amid slowing property investment. For example, increasing the investment in high-speed rail, highways, water conservancy, electricity, urban infrastructure and so on will stimulate the new demand for construction machinery, while significantly increasing the purchase of railway equipment will stimulate the demand for railway equipment.

Second, factor price decline to reduce cost pressure. Since August 2008, the prices of raw materials such as steel and energy began to drop sharply, and the People's Bank of China has also lowered the loan interest rate for many times. The falling prices of factors such as steel, energy and capital will reduce the cost pressure of the machinery industry. In particular, the falling steel prices will be of great benefit to enterprises with high steel costs, including China Shipbuilding and Guangsheng International. Construction machinery industry in Liugong, Xiagong shares, Anhui Heli and Shantui shares, heavy machinery industry in Taiyuan Heavy industry and Zhenhua Port machinery.

3. Increased policy support. Since August 2008, the government has increased support for the machinery industry. In addition to the previous announcement of "domestic enterprises for the development and manufacturing of ultra high voltage power transmission and transformation equipment, large petrochemical equipment, large coal chemical equipment and import key parts, raw materials to pay the import tariff and import link VAT will be imposed first back. In addition to the favorable policies for the machinery industry, such as the partial import of equipment and the cessation of import duty exemption, the recent "VAT shift from production to consumption" will also constitute a major favorable for the machinery industry. These policies on the one hand stimulate the demand for machinery, on the other hand, it can enhance the competitiveness of domestic equipment, reduce its production cost, and help the long-term development of the industry.

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